The state of Bahia in northeastern Brazil has signed a significant early-stage agreement with GoVerde Energia to develop a large green hydrogen-powered industrial park. This initiative, highlighted by a letter of intent between Bahia’s Secretariat for Economic Development (SDE) and GoVerde CEO Ricardo Junqueira, involves an estimated $1.6 billion investment in hydrogen, methanol, ammonia production and solar power infrastructure. The project will feature a new industrial site costing approximately 5.4 billion reais ($950 million) alongside a solar park valued at 3.6 billion reais ($633.5 million), set to span several regions in Bahia and generate up to 1.5GW of electricity annually.

The planned industrial park will produce green methanol, ammonia, and oxygen, initially focusing on 300 tpd of methanol and ammonia, and 155 tpd of oxygen. As the project progresses, output will increase with additional phases, adding another 200 tpd. The green methanol produced will target international export markets, particularly maritime shipping and aviation sectors, which are seeking scalable, zero-emission alternatives to decarbonize their operations. German suppliers will contribute technology, emphasizing the global scale and importance of this project.

GoVerde Energia’s pivot to green chemicals builds on its prior involvement with solar energy and green hydrogen projects in Brazil, including the green hydrogen hub at Ceará’s Pecém Industrial and Port Complex. While specific timelines for the project’s final investment decision (FID) or phase one completion remain unspecified, the Bahia government views this development as a key step in solidifying the state’s leadership in Brazil’s green fuel sector. CEO Ricardo Junqueira emphasized Bahia's pivotal role in advancing green methanol production and its position as one of the most favorable locations in Brazil for such an ambitious project aimed at global decarbonization goals.